Recent on-chain data reveals that Ethereum whales have been actively accumulating the second-largest cryptocurrency despite its price decline. Reports show that on July 24 alone, these whales purchased a staggering amount of 297,670 ETH ($1 billion), following another significant buy the day before. This robust accumulation trend indicates a strong bullish sentiment among large holders, despite the short-term underperformance of ETH.
Data from the market intelligence platform IntoTheBlock also highlights a notable increase of over 28% in the inflows into Ethereum whales’ addresses over the past week. On the other hand, outflows from these addresses have seen a decline of over 14% in the same period, signaling a continued accumulation rather than selling off of ETH holdings. This accumulation behavior is further exemplified by the large holders’ netflow metric on IntoTheBlock, which has surged by over 313%.
An interesting observation made by on-chain analytics platform Santiment attributes the recent surge in whale activity to the introduction of Spot Ethereum ETFs on July 23. Since July 17, the value of ETH transfers has surpassed that of BTC and USDT transfers on the Ethereum network by a significant margin. The anticipation of higher prices for ETH fueled by the introduction of these ETFs has likely incentivized Ethereum whales to continue accumulating the crypto token.
While the Spot Ethereum ETFs were expected to drive a bullish rally in Ethereum’s price, historical data suggests a potential initial struggle for the cryptocurrency. This mirrors the scenario faced by Bitcoin following the launch of Spot Bitcoin ETFs earlier this year, leading to significant price declines due to outflows from investment trusts like Grayscale’s Bitcoin Trust (GBTC). The ongoing situation with Grayscale’s Ethereum Trust (ETHE) indicates a similar trend, with a substantial net outflow of $484.1 million on the first day of trading, highlighting the selling pressure ETH may face.
The current behavior of Ethereum whales in accumulating significant amounts of ETH amidst price declines raises questions about the overall market sentiment towards the cryptocurrency. While the introduction of Spot Ethereum ETFs presents a bullish outlook for ETH in the long term, potential headwinds may dampen immediate price performance. Investors and traders alike will be closely monitoring the developments surrounding Ethereum whales and the impact of ETFs on the cryptocurrency’s price trajectory.
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